Companies

Coromandel sees good outlook with GST cut

Our Bureau Hyderabad | Updated on July 27, 2018 Published on July 27, 2018

Despire an ‘erratic monsoon distribution’ in its key operating markets, Murugappa Group company Coromandel International posted a consolidated net profit ₹90 crore in the quarter ended June 2018, showing a growth of 23.3 per cent over the same quarter last year.

The firm registered total income of ₹2,537 crore (₹2,318 crore), showing a growth of 9.4 per cent.

The standalone net profit stood at ₹88 crore (₹71 crore) up 23.9 per cent. The total income grew ₹2,527 crore in the quarter from ₹2,304 crore in the comparable quarter previous year.

“We had a strong performance during the quarter, improving our capacity utilisation, operational and sourcing efficiencies and customer connect initiatives,” Sameer Goel, Managing Director of Coromandel International, said here in a statement on Friday. “We launched five new products across the businesses, which were received well by farmers.”

Outlook

Goel further said the outlook for the company looked bright in the backdrop of a normal South-West monsoon, improved reservoir levels and pick-up in sowing activity in its key operating markets.

“With the higher crop support price, we see positive agrarian sentiments,” he said.

“Reduction of GST on fertiliser-grade phosphoric acid from 12 per cent to 5 per cent would bring down the company’s GST credit accumulation and improve the working capital situation. It will also improve the working capital situation,” he added.

Published on July 27, 2018
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